BILL ANALYSIS Ó SENATE COMMITTEE ON NATURAL RESOURCES AND WATER Senator Fran Pavley, Chair 2015 - 2016 Regular Bill No: AB 1205 Hearing Date: July 14, 2015 ----------------------------------------------------------------- |Author: |Gomez | | | ----------------------------------------------------------------- ----------------------------------------------------------------- |Version: |May 5, 2015 Amended | ----------------------------------------------------------------- ----------------------------------------------------------------- |Urgency: |No |Fiscal: |Yes | ----------------------------------------------------------------- ----------------------------------------------------------------- |Consultant:|Katharine Moore | | | | ----------------------------------------------------------------- Subject: The California River Revitalization and Greenway Development Act of 2015. BACKGROUND AND EXISTING LAW California has over 46,000 miles of perennial (year round) streams located throughout the state. River parkways, including those in urban areas, are some of the most sensitive and ecologically important conservation areas in the state. They may provide crucial riparian habitat for multiple species - including endangered and threatened species - and also provide important open space for communities. Many communities, particularly urban communities, are "park poor." These communities have insufficient open space areas nearby and lack ready access to public recreational opportunities afforded by proximity to trails, parks and open space. Existing law authorizes the Department of Water Resources to establish a program of flood damage reduction and urban creek restoration known as the Urban Streams Restoration Program (Water Code §7048). Since 1985, the program has provided more than 270 grants ranging from $1,000 to $1 million to communities throughout California for projects ranging from bank stabilization to the occasional acquisition of strategic floodplain properties or easements. The last funding cycle for the program was in 2014, where over $8 million was awarded to 13 project proposals. Existing law establishes the California River Parkways Program AB 1205 (Gomez) Page 2 of ? (Public Resources Code (PRC) §§5750 et seq.) under the administration of the Secretary of the Natural Resources Agency (agency). It requires the agency to provide grants for river parkway projects that acquire land for river parkways or for the restoration, protection, and development of river parkways. The agency is currently soliciting for a one-time funding round of approximately $7.6 million for the acquisition, restoration, protection and development of river parkways. The funds for this cycle are the last of the Proposition 84 funding for the program. Eligible entities include public agencies and non-profits. Additionally, the agency administers other grant programs, including the Urban Greening for Sustainable Communities (on behalf of the Strategic Growth Council) and the Environmental Enhancement and Mitigation Program that river restoration and related projects may be eligible for and have received funding from. Further, various state bond acts and legislative appropriations have repeatedly provided moneys, through a variety of programs and mechanisms, for river and stream restoration. State-level organizations providing grants for these purposes include the Department of Fish and Wildlife; the Wildlife Conservation Board; various Conservancies, including the State Coastal Conservancy, the San Joaquin River Conservancy, the Santa Monica Mountains Conservancy, the Strategic Growth Council, and CalFIRE, among others. Most recently, in November 2014, voters approved the Water Quality, Supply, and Infrastructure Improvement Act of 2014 (Proposition1). Proposition 1 authorizes $7.545 billion in general obligation bonds to fund ecosystem and watershed protection and restoration, water supply infrastructure projects, including surface and groundwater storage, and drinking water protection. More specifically, $1.495 billion is designated for competitive grants for multibenefit ecosystem and watershed restoration projects. Pursuant to the California Global Warming Solutions Act (AB 32), existing law requires the Air Resources Board (ARB) to adopt a statewide greenhouse gas (GHG) emissions limit equivalent to 1990 levels by 2020 and to adopt rules and regulations to achieve maximum technologically feasible and cost-effective GHG AB 1205 (Gomez) Page 3 of ? emission reductions (Health and Safety Code (HSC) §§38500 et seq.). As part of the implementation of AB 32 market-based compliance mechanisms, ARB adopted a cap-and-trade program that caps the allowable state wide emissions of GHGs and provides for the auctioning of emissions credits. Auction proceeds are deposited into the Greenhouse Gas Reduction Fund (GGRF) and available for appropriation by the Legislature. Existing law establishes and authorizes expenditures from the GGRF for investments that reduce GHG emissions associated with water use and supply, land and natural resource conservation and management, forestry, sustainable agriculture and other purposes. Existing law requires the Department of Finance, as specified, to allocate at least 25% of available moneys in the GGRF to projects that provide benefits to disadvantaged communities and at least 10% to projects located within disadvantaged communities (HSC §39713). Existing law also prohibits the state from approving allocations for a measure or program using GGRF monies except after determining that the use of those moneys furthers the regulatory purposes of AB 32 (HSC §39712). The 2014 - 15 Budget Act allocated cap-and trade revenues for the 2014 -15 fiscal year and established a long-term plan for the allocation of cap-and-trade revenues beginning in fiscal year 2015 - 16. The Senate Environmental Quality Committee analysis of this bill includes a detailed review of the auction revenue expenditures and requirements. The 2015 -16 budget bill passed both houses on June 15, 2015, but excluded any appropriation of cap-and-trade auction revenue. PROPOSED LAW This bill would create a grant program called the California River Revitalization and Greenway Development Act of 2015 (CalRIVER) and require the agency to administer the program. Specifically this bill would: 1)Declare legislative intent to protect, restore and enhance a network of river systems and riparian corridors. 2)Require the agency to develop a grant program for eligible applicants to develop projects that assist with implementing AB 32 and to prioritize funding projects that provide the AB 1205 (Gomez) Page 4 of ? greatest level of the following cobenefits: a) Recreational access, as specified, especially in urban corridors and under-parked communities. b) Transportation mobility, especially pedestrian, bicycle, and public transit. c) Economic viability by promoting appropriate development, as specified. d) Development of visitor-serving and interpretative facilities e) Access and development of pocket parks, community gardens, demonstration gardens and other urban greening. f) Species protections and the protection of habitat strongholds, including improved wildlife corridors. g) Improved resiliency to climate change impacts. h) Improved water supply and quality. i) Job training and workforce development, as specified. j) Improved stormwater retention. aa) Improvements along impaired water bodies. 3)Requires projects receiving grants to be consistent with AB 32, the California Water Action Plan, the Safeguarding California Plan and SB 535 (de León, c. 830, Statutes of 2012). 4)Requires the agency to prioritize awarding grants to projects that are consistent with a parkway, greenway or urban greening plan, leverage Proposition 1 funds, and provide recreational access to a major metropolitan area of the state. 5)Creates the CalRIVER fund, as specified, to receive bond proceeds and special funds, including, but not limited to, auction revenues from the GGRF. 6)Makes various supporting legislative findings, as specified. ARGUMENTS IN SUPPORT According to the author, "Given the vast potential for using our river systems to reduce and sequester greenhouse gas emissions, and no existing integrated, statewide grant program to deliver these benefits, this bill would establish CalRIVER." "The program would be especially useful in incentivizing projects that integrate stormwater, natural resource improvements, as well as reduction in vehicle miles traveled. AB 1205 (Gomez) Page 5 of ? Without CalRIVER, the state would continue to miss the opportunities to harness the climate values of our riparian corridors for greenhouse gas reductions, as well as the many other cobenefits associated with these projects." ARGUMENTS IN OPPOSITION According to the California Taxpayers Association, "AB 1205 would make cap-and-trade funds available for use by the Natural Resources Agency in administrating the CalRIVER Fund to provide funding for park and recreational programs, and water supply and water quality programs. CalTax is opposed to the bill because it distorts the nature of a regulatory fee. [?] Pending litigation will determine if the auction component of the cap-and-trade program constitutes an illegal tax. By directing funds beyond the clear regulatory purposes, AB 1205 opens up the cap-and-trade program to litigation risk." COMMENTS CalRIVER is a targeted program. The legislative intent section of this bill makes clear that the intent of the CalRIVER program is GHG emissions reduction and carbon sequestration while at the same time achieving the multiple cobenefits possible through river restoration and related projects, as specified. This focus becomes slightly muddled later in the bill. Discussions with the author's office indicate that the bill's intent is to provide additional resources, but not replace, existing programs established for river restoration and related projects. The committee may wish to amend the bill to clarify this point. [Amendment 1] Implementation of the program . The statutory language for many grant programs includes specific direction to the grantor to develop the program. The committee may wish to provide specific direction to the agency secretary to do so. [Amendment 2] Litigation over auction revenue. In 2012, the California Chamber of Commerce filed a lawsuit against ARB claiming that cap-and-trade auction revenues constitute an illegal tax. The Superior Court ruling in late 2013 found that the auction is more akin to a regulatory fee than a tax. An appeal of that decision is pending. However, the committee may wish to require additional language to more explicitly tie the CalRIVER program into the statutory and regulatory framework developed to ensure AB 1205 (Gomez) Page 6 of ? that GGRF moneys further the regulatory purposes of AB 32 [Amendment 3] Technical and clarifying changes . The committee may wish to make a series of minor technical and clarifying changes to the bill to help ensure the bill's intent is realized. [Amendment 4] Late "support if amended" letter . A late letter signed by several community-based organizations expressed qualified support for AB 1205, and requested several amendments. The letter expresses concerns about CalRIVER supplanting existing river and stream restoration programs, such as the Urban Streams Restoration Program, and requests the provision of base funding for existing river/stream programs, the removal of any prioritization for urban areas, assurance that all river grant programs have tools to meet auction revenue requirements, and the establishment of a program or process to help communities engage in the "often confusing state funding processes." As noted above, CalRIVER is a targeted program, and would be one of many state programs that provide funding for river and stream restoration. While many river and stream restoration efforts may have climate value, it is not clear that all efforts will be able to qualify for auction revenues. There is therefore benefit in having multiple programs established for river and stream restoration with funding, subject to Legislative appropriation, from a variety of sources. Further, many existing grant programs provide workshops and assistance to those seeking funding without a specific statutory requirement. Rivers with plans. According to the author's office, rivers throughout the state are in the process of or have completed restoration plans that could meet that priority criterium established in this bill. These include the San Joaquin, Eel, American, San Diego and Los Angeles Rivers. These plans contain rural reaches. There have also been considerable efforts undertaken in recent years to revitalize the Los Angeles River. Both the County (1996) and the City (2007) of Los Angeles have released revitalization plans, and the US Army Corps of Engineers recently approved the most extensive restoration alternative for its Ecosystem Restoration Feasibility Study for the Los Angeles River. Currently, the LA River's "Greenway 2020" plan calls for public/private efforts to achieve a continuous 51 mile greenway along the Los Angeles River by 2020 AB 1205 (Gomez) Page 7 of ? to facilitate non-vehicular modes of transportation and recreational access, among other goals. There have also been several pocket parks added along the Los Angeles River in recent years. Double-referral This bill was heard earlier in the Senate Environmental Quality Committee. Elements of the bill under that Committee's jurisdiction are provided here for context and completeness. Recent related bills AB 1251 (Gomez, 2015). This bill would establish the Greenway Development and Sustainment Act which, among other things, provides for greenway easements. (before the Senate Appropriations Committee) AB 530 (Rendon, 2015). This bill would establish the Lower Los Angeles River Working Group to develop a revitalization plan for the Lower Los Angeles River. (before the Senate Natural Resources and Water Committee) AB 735 (Gomez, 2013). This bill would have established the Greenway Initiative to promote the establishment of greenways along rivers statewide (held in the Assembly Appropriations Committee) AB 1922 (Gomez, 2014). This bill is an earlier version of AB 1251 (Gomez, 2015) (held in the Senate Appropriations Committee) SUGGESTED AMENDMENTS AMENDMENT 1 On page 4, lines 9 & 10, delete "river parkway and urban creek programs and" AMENDMENT 2 On page 4, insert after line 11: "5849. The secretary shall develop regulations, criteria, or procedural guidelines for the implementation of this chapter." AMENDMENT 3 Delete page 2 lines 32 -33 and page 3 line 1-3 and replace AB 1205 (Gomez) Page 8 of ? with: "to riparian corridors that furthers the regulatory purposes of the California Global Warming Solutions Act of 2006 (Division 25.5 (commencing with Section 38500) of the Health and Safety Code) andmeets the requirements of the Greenhouse Gas Reduction and Communities Revitalization Act (commencing with Section 39710) of the Health and Safety Code). (b) In order to eligible for funding under the program, a project shall demonstrate that it will achieve a reduction in emissions of greenhouse gases. In selecting projects for funding, the Natural Resources Agency, in consultation with the California Air Resources Board, shall consider the extent to which a project reduces emissions of greenhouse gases. (c) In evaluating grant applications for funding, the Natural Resources Agency shall, in addition to prioritizing projects pursuant to subdivision (b), consider the extent to which projects provide the greatest level of the" AMENDMENT 4 On page 2, line 28, delete "and improve," delete line 29 and replace with: "increase active transportation, such as biking and walking and improve non-motorized mobility in the surrounding communities and decrease vehicle miles traveled." On page 3, line 5, add "to" between "access" and "and" On page 3, line 5, delete "interactions," and replace with "interaction with a river or riparian corridor," On page 3, line 7, insert "Improved" before "transportation" On page 3, line 9 insert "of the surrounding community" after "viability" On page 3, delete line 18 and replace with: AB 1205 (Gomez) Page 9 of ? "(8) Improved water supply, flood protection and water quality, including the water quality of impaired water bodies through river restoration." On page 3, delete line 22. On page 3, line 23, replace "(b)" with "(d)" and insert "also" after "shall" On page 3, delete lines 25 - 27, inclusive. On page 3, delete line 31. On page 3, between lines 31 and 32 insert: "(e) projects receiving funding pursuant to this chapter for flood protection shall be consistent, as applicable, with Chapter 4 (commencing with section 8400) of Part 2 of Division 5, Part 6 (commencing with section 9600) of Division 5, and Part 9 (commencing with Section 12980) of Part 6 of Division 6, of the Water Code." On page 3, line 32, replace "(c)" with "(f)." On page 4, delete lines 1 - 2, inclusive, and replace with: "(3) Provide recreational access and opportunities to major metropolitan areas of the state, including those that are relatively underserved by parks." SUPPORT Audubon California California League of Conservation Voters California Trout Los Angeles County Board of Supervisors Los Angeles River Revitalization Corporation Sierra Club California OPPOSITION California Taxpayers Association -- END -- AB 1205 (Gomez) Page 10 of ?